"As the labor market continues to tighten, small businesses may increasingly face challenges when it comes to offering wages that can compete with larger businesses," Ahu Yildirmaz, head of the ADP Research Institute, said in the release.

Goods-producing companies lost 4,000 jobs, fewer than in June, as manufacturing employment increased. The construction industry lost 5,000 private payrolls.

This data comes ahead of the Bureau of Labor Statistics' numbers on Friday, which are projected to show an increase of 180,000 in nonfarm payrolls.